Question to the Department for Transport:

To ask the Secretary of State for Transport, what the process is for HS2 Ltd in agreeing the market value of properties through the (a) statutory blight and (b) non-statutory property compensation schemes.

a) HS2 Ltd follows the statutory process for determining compensation under statutory blight in line with other Acquiring Authorities. In practice, the Acquiring Authority and claimant each appoint a surveyor to assess the unblighted market value of the property and the disturbance compensation. Each valuer will look at comparable property transactions and value the property disregarding the underlying scheme for which the CPO powers exist. The valuers will discuss their valuations, comparables and methodologies to explore the potential to reach an agreement. Where agreement cannot be reached, the Compensation Code provides for disputes as to the level of compensation to be determined by the Upper Tribunal (Lands Chamber).

b) For the discretionary schemes introduced by the Secretary of State, the valuation approach is set out in published guidance and provides for each party to commission a valuation from a Registered Valuer. Where the two valuations are within 10% of each other (calculated by taking the difference between the two values as a percentage of the higher value) the Secretary of State will offer a price that is the average of the two valuations. If the valuations differ by more than 10% (calculated as above) an additional valuation will be obtained from HS2 Ltd’s pool of valuers (chosen by the applicant). The third valuer will be provided with the previous reports for consideration, with the valuation figures themselves removed. The offer will be made on the average of the closest two valuations.